iCharts Discussions

[hitman4683]

Hi ppl,
Excuse me if this is not the proper place to post this!!!
Am pretty new to trading in FNO. I faced the following problem in this week. On Wednesday(22nd-Jul-2008). I took short position in MINIFTY @ 4194.
The day market closed somewhere at 4270 so I decided not to square off and carry the position till the next day. The subsequent day I saw the value of the contract change to 4251. I thought it was a problem with the vendor. I had been quite a bit busy on 23rd and still decided to hold the position.
24th was a complete surprise. The contract value changed to 4494(approximately 6000/lot)
The differential amount in the entire transaction was deducted from my trading account.
I have my demat account with Reliance Money. Please lemme know if this is correct or not. I have been trying to contact these ppl regarding it but I am not getting any response

[xerox.iitr]

Hi Hitman,

This is the expected behavior in F&O and you contract value and deduction of money changes on basis of daily variation in market , called as MTM(market to market). For Ex .

1.MINIFTY @ 4194 --> 22nd-Jul-2008

2.MININIFTY@4251-->23rd jul 2008

On 23rd MININIFTY value must be 4251 at eod. and the difference in the amount on the basis of contract vale on 22ndand 23rd of july must have deducted from your account.

NOW 4251 is your actual contract value(You can say as if u have taken short on 4251). So your next day profit/loss will be based on 4251.

Hope its clear your doubt

[hitman4683]

Yeah buddy me a complete noob so didnt know it and hence got screwed!!! Anyways understood now!!!!

[enggabhinandan]